The weaving sector is the backbone of the textile industry. Approximately 95% of the weaving sector in India is unorganized in nature. The decentralized power loom and hosiery sector contributes 85% of total fabric production. The processing segment is also dominated by a large number of independent, small-scale enterprises.
Since, the weaving/processing sector in India is dominated by small-scale enterprises, it has challenges. Further, low productivity and automation levels also remain one of the biggest woes for the Indian weaving industry. Due to these factors, the overall performance of fabric production in India is getting dampened. The weaving sector still remains one of the weakest links of the Indian textile and apparel industry.
India has one of the largest installed production bases though in the world in weaving sector but at the same time it uses old technology with low productivity and quality levels. In terms of technology adoption in the weaving sector, India has only 2% share in global shuttle-less looms or modern looms installed capacity. The cost of production in India also goes up due to poor technology levels and low scale of operations, as 95% of the weaving sector in India is unorganized and in small scale. India also lacks the presence of large fabric manufacturers when compared to China and the US.